If a vendor sends you a tax invoice that does not match the amount of tax on the original invoice, you have to account for the difference between the two amounts. When you enter the tax invoice, the system posts the difference for you automatically to an account of your choice (see also the example below).

Define reason codes for the tax differences in Customizing for Financial Accounting (FI), by choosing Accounts Receivable and Accounts Payable ® Business Transactions ® Outgoing Payments ® Manual Outgoing Payments ® Overpayment/Underpayment ® Define Reason Codes (Manual Outgoing Payments).

For each reason code, enter a code number, short text, and long text, and select C (Charge off difference via separate account).

Specify which G/L account the tax differences are to be posted to in Customizing for FI, by choosing Accounts Receivable and Accounts Payable ® Business Transactions ® Outgoing Payments ® Manual Outgoing Payments ® Overpayment/Underpayment ® Define Accounts for Payment Differences (Manual Outgoing Payment).

For each reason code that you have entered, specify a G/L account.

Enter the vendor tax invoice in the SAP System as normal, using the Transfer Deferred Tax program. On the selection screen, enter the reason code that you have defined in the Valuation Grpg Code field.

When you enter the tax invoice details, enter the tax amount stated on the source document. When you save the tax invoice, the system makes the appropriate accounting postings automatically.

A vendor invoices you for services rendered worth THB 5,000 plus THB 500 value-added tax (VAT). You enter the invoice in the system and it creates the following accounting document:

You pay the vendor accordingly:

Once the vendor receives notification of your payment, it sends you a tax invoice, but the tax invoice only has THB 490 VAT.

When you transfer the deferred tax to the regular tax account, you enter the tax amount stated on the tax invoice, and the system automatically makes the following posting:

The THB 10 which is unaccounted for is debited to an expense account for tax errors.